Collection accounts, along with bankruptcy, foreclosure, and repossessions, are one of the most harmful items that can appear on your credit report.
And here’s something shocking: If you make a payment on a credit collections account, your credit score could be damaged!
But we have several strategies:
- First, address credit collections by attempting to negotiate with the creditors and / or collection companies for a letter of deletion.
- Start following all of the rules of credit-scoring. Know how to fix credit, and know exactly what goes into your credit score. The credit-scoring bureaus pay more attention to the things you have done in the past two years than things that happened more than two years ago. If you turn over a new leaf today, your credit report might not be squeaky clean, but you can enjoy a 720 credit score in as little as two years!
- Be sure you know all about secured credit cards and authorized user credit cards, as these are two tools that can help people with bad credit caused by collection accounts.
- Know your options if you are unable to get the collections accounts off your credit report. See the following four posts:
- Collection Accounts on Credit Report: Option #1
- Collection Accounts on Credit Report: Option #2
- Collection Accounts on Credit Report: Option #3
- Collection Accounts on Credit Report: Option #4
Phillip – Ed Financial was the owner of my student loan. I had being faithfully for years until I got in a bind. It eventually was turned over to the collections agency. I finally was able to set up a monthly payment plan with NCO Financial and I am almost finished paying off the loan. I think I have about $120 remaining.
A couple of months ago I pulled my credit report and seen that Ed financial still shows with the balance, and is reporting past due. I also saw the NCO Financial same loan, and my updated history.
I disputed the Ed Financial as being a duplicate account. I was sent an e-mail to let me know my account had been updated. I now find that Ed Financial has updated as if to say I still owe them the full balance and in collections.
I returned to pull a different report and reran my score. My score has decreased. I believe because of what they updated my report with.
What can I do to get this corrected? Disputing it made this acct worse.
Thanks, Martha
i had purchased the 720 Credid Score program. i have tried to get back up on top of my financials/reastablish my scores. i just got promoted last year in Apirl,2011. my credit is beyond reparable. its frustrating. Help. i tried looking into the cd’s but maybe my income is not enough to get over the walls of bills.
I was the victim of identity theft and I have many medical bills on my account, some of which are mine and some which are not mine, Please tell me how to correct this.